Ford CEO Jim Farley cited enforcement issues as a factor behind the disappointing fourth-quarter results.
Ford reported an annual loss on Thursday after disappointing fourth-quarter earnings reflected what it called performance-damaging execution issues.
“We should have done much better last year,” said Ford CEO Jim Farley. “We’ve left around $2 billion in profit on the table under our control, and we’ll remedy that with improved execution and performance.”
Farley did not elaborate on the issues. Automakers have been grappling with supply chain issues over the last year as pandemic-related shortages of semiconductors and other key parts have slashed output.
Ford reported a profit of $1.3 billion for the quarter ended December 31, much lower than the $12.3 billion in the same period a year earlier driven by an accounting gain on Ford’s stake in Rivian.
Revenue grew 16.7% to $44 billion.
Fourth-quarter profit—lower than the company’s previous forecast—pushes Ford to a loss of $2.0 billion for the full year of 2022, compared with a profit of $17.9 billion the year before.
Like rivals like General Motors, Ford has invested heavily in tramlaunched zero-emission versions of best-selling cars like the F-series pickup truck.
The The company assigned its legacy internal combustion cars to the “Ford Blue” division.
The US automaker expects adjusted earnings before interest and taxes between $9 and $11 billion, up from $10.4 billion in 2022.
Shares of Ford fell 5.9% to $13.47 in after-hours trading.
© 2023 AFP
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